Policy paper

Termination payments: removal of foreign service relief

This measure removes foreign service relief as it applies to the Income Tax applicable to employment termination payments and introduces a residency test.

• From: HM Revenue & Customs and HM Treasury
• Published: 13 September 2017
• Last updated: 6 April 2018 — See all updates

This was published under the 2016 to 2019 May Conservative government

Documents

Income Tax and National Insurance contributions termination payments: removal of foreign service relief for UK residents

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Draft legislation: termination payments

PDF, 57.2 KB, 3 pages

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Explanatory note for termination payments

PDF, 114 KB, 2 pages

Details

This measure applies if you’re UK resident in the tax year your employment is terminated, and:

• removes foreign service relief
• introduces a residency test

Update

The introduction of employer NationaI Insurance contributions on termination payments above £30,000 will take effect from 6 April 2019.

Published 13 September 2017
Last updated 6 April 2018 + show all updates

1. 6 April 2018

   Updated with information about Foreign service relief and Payments in lieu of notice.

2. 13 September 2017

   First published.